Volvo Sale Has Ford Shuffling Exec Ranks

Ford Motor Co. is shuffling executives to meet operational needs as it sheds Volvo, The Detroit News reported.

Analysts say the moves highlight candidates for the eventual succession of CEO Alan Mulally. The Dearborn automaker announced that Jim Farley will become global leader for marketing, sales and service, effective Aug. 1, in keeping with Ford's pursuit of growth as a united global company.

Other executive appointments prepare for Ford's sale of Sweden's Volvo to Zhejiang Geely Holding Group Ltd. next month.

Upon completion of the sale, Volvo Cars CEO Stephen Odell, 55, will become CEO of Ford of Europe, replacing John Fleming, who moves to global manufacturing and labor affairs.

Volvo Chief Financial Officer Stuart Rowley will become chief financial officer at Ford of Europe.

Mulally turns 65 next month, the traditional retirement age for top Ford executives. He shows no signs of stepping down, and Executive Chairman Bill Ford Jr. has said Mulally is welcome to stay as long as he likes.

Ford declined to publicly discuss succession plans.

Industry analyst Joe Phillippi of AutoTrends Consulting Inc., in Short Hills, N.J., said Mulally is a "young and vigorous" CEO, "but his second job is to find and groom his successor."

Odell joins a short list of potential candidates that includes Chief Financial Officer Lewis Booth, who at 61 is not much younger than Mulally, and Fleming, 58.

Younger executives to watch include Mark Fields and Joe Hinrichs. Fields is president of the Americas and gained international experience with Ford in South America, Asia and Europe. Hinrichs oversees the Asia/Pacific region for Ford and has had responsibility for Canada and global manufacturing.

Farley, 48, remains in the mix. The move to align marketing under a single leader is important and plays to Farley's strength, said David Cole, chairman of the Center for Automotive Research in Ann Arbor. "But he's sales and marketing and it's not common to see that type in the CEO position," he said.

Farley was gaining operational experience overseeing Canada, Mexico and South America, which ends with his new role. Eduardo Serrano, head of Ford of Mexico, adds Latin America to his duties in the realignment.

When Mulally joined Ford in 2006, the automaker had lost many veterans who were replaced by talented young executives in their first major roles.

Cole said one of Mulally's strengths is an ability to play coach and groom several candidates for each key position. "You need a spread of ages and diversity of background," Cole said. The top job favors backgrounds in product development, engineering and manufacturing, he said.

Phillippi said the latest appointments will test the team.

Fleming must negotiate a new contract with the United Auto Workers next year. The UAW expected to choose Ford to set the pattern for an agreement for General Motors Co. and Chrysler Group LLC to follow. Odell is responsible for the region that needs the most mending, Phillippi said. "Europe will go through a wrenching time over the next few quarters."